In 2012 Buckeye Research Labs patented a new polymer. The patent was capitalized at $55,000, but the market value is $800,000. Buckeye determines that the legal life of the patent is 8 years, although it knows that the useful life is only 5 years.
Required
Record the entry for amortization expense for 2012. Assume that Buckeye records a full year of expense.